Saturday, March 28, 2015

Personal Selling and Sales Management

Hermes is highly respected luxury brand and has a rich heritage which lives up to their mission statements. They always strive to excellence and perfection to exceed customer satisfaction.
Personal selling is very important to Hermes because the brand and the product have a high value as well as custom made and hand made. It is a neigh market compares to other commodities. For that reason, the brand isn't highly advertised or ever consider sales because it will decrease the value of the brand. Customers have guarantee of quality, caftmanship,  timeless design, and rarity.
Inside an Hermes, there are personal shoppers or stylists who will guide and help you find the right product for you though the store. They will walk right beside you and answer any questions you may have regarding the products. These sale associates are highly trained to be knowledgeable of all the products in the store, so they are not hesitant to answer any questions.  They are close to brand consultant. However, to keep their customers engage and involve, they post latest campaign on their social media such as Facebook and instragram. Many celebrities post their photos wearing Hermes clothes as well as handling their famous Birkin bags. It although doesn't sell the product but helps expose the products to wider group of people regardless of age, sex or race.

Her's sale philosophy is beyond making the highest sales unit, but making sure that customers satisfaction is their priority in order to maintain a priceless relationship with them. In addition, to every purchases, Hermes packs their goods in a delicate high quality dust bag which is put inside an iconic orange Hermes box again. Then lastly tied with an Hermes printed ribbon. Although I do not see that it adds value to the good but it well compliments the product itself. It reminds customers that they treat their products with care as well as their customers.

Sunday, March 22, 2015

Advertising, Public Relations and Sales Promotion

Hermes is known for every luxury goods they make from handbags, scarves, clothes, accessories, shoes, and etc. When it comes to advertising, it is very important to them to to close the medium and accurately go through media planning in order to accomplish a successful ad campaign that deliver the message. There is a ad campaign of Hermes back in 2008 that could still remember till today because of its extravagant. In my opinion, the elephant is a sign of power. The colors are miraculous beautiful on the pain black skin of the animal. It also show feminism because of the tone of the color and the designs on the elephant. 
Hermes Ads are targeted current consumers and new consumers. Advertisting can be found in high ends fashion magazine that only target toward consumers who have more purchasing power. Ads are on the site as well as their Facebook page. Sales promotion, rebate,and coupon have never been a strategy for Hermes to reach out for their customers because its value is beyond the number of units being sold. In addition, they also have video of different ads  to reach out their customers. When it comes to royalty marketing program, Hermes does it by never lower their band products quality and that's what keep their customers coming back through generation. It is also easier to acquire customers when the satisfaction is proven through generation

Friday, March 13, 2015

Marketing Channels and Retailing

As an exclusive retailer, Hermes, only has limited number of their retail shops which is known as exclusive distribution. However, the shop doesn't just offer typical retail services. Hermes hire employees who are specialized in certain products. For example, if there is a scarves collection in the shop, there would also be a silk specialized since their scarves are made from silk. Having a specialist is very vital to the retail as their clients are spending a lot of money on each product. It is important to ensure customer satisfaction of the product by helping or suggesting colors, sizes, or styles that will suit each clients perfectly. They are also known as personnel. Retailing is not only of Hermes marketing channel, the other is their site which you you possibly buy every product except the Birkin and Kelly bags which needs to be purchase in store only.  As an exclusive retailer, the service is expected to be as high as the price as well as the quality of the product. Location is crucial which leads to demand in high gross margin to pay their highly trained associates, the rent, and everything else. It runs as a specialty store. Different locations are targeted toward different target market. Every Hermes store are located in a highly expensive area which also attracts both tourists and locals.

When it comes to choosing the retailing mix.
The products are everything of the brands. Hermes have expanded their products line from casual to high end clothing, sport clothing, jewelry, saddles equipment, travel luggages, watches, leather goods, furniture, tableware, bedding and decorative objects. Their online channel seems to offer the most of Hermes, while the store still keeping their exclusiveness to carry certain products. The presentation of the display in the store represent a timeless fashion with bright colors. The store rather on the spacious side. All of the associate are in business attire. The store I went to was on Board st/ Wall st. in Financial district. Beside the website and the store, Hermes also have two application on iPhone that are for scarves and tie. One is called Hermes Silk Knots which shows their clients different style they can do with their scarves. The other is called Hermes Tie Break which help their clients take a break from their reality of office, airport, and etc to play a game and discover as well as master the art of tying a tie. I find it to be very interesting for them to launch an game application as they mightbe trying to connect with younger target market.

Saturday, March 7, 2015

Consumer Decision Making


There is always something that drive us to purchase something whether it is necessary or not.
Consumer decision making is very crucial to the brand's marketing. We buy products for various reasons. There are 9 reasons that make consumers choose Hermes Birkin bag:
1 Quality over quantity, nobody in the market makes bags by hand like Hermes and that says everything about the brand and the quality of the bag itself.  Every bags are a piece of art which are handcrafted by Parisian artisans. 2. Many designers sell expensive bags, but does it really expensive nor look expensive? 3. Owning a Birkin doesn't only mean that you have a good taste, but it also shows status. There is no need to impress people because the bag will do it. 4 Color is the key. Dying leather is a very tricky process because the color often fades quickly when being uses a lot. Hermes has bags in every color including rainbow and they do it very well in getting the right shade. 5. Versatilities is the key to the Birkin bag. It can be use from a very casual event to a highly formal events. The brand also offer variety of products from clothing to accessory to housewares. 6. Hermes can also customized your bag with possibly any materials from gold to diamonds. 7. When there's a major buy, there has to be trust with whom you are buying. Hermes is one of the few independent company that is still own and run by family. 8. Hermes doesn't beg celebrities to carry their bags around because every bags deserve a respect. 9. Every handbags hold its value which means that it can be sold with a higher or similar price. Hermes offer a spa service to their Hermes loyalty to repair their bags to as close as new as possible. I think these reasons give consumers enough knowledge of why people are willing to drop a huge chunck of their money for a bag at an Hermes store as well as everything else. There will be a lot of people who will doubt buying Hermes products because of its hefty price tag. It is part of financial risk that they will need to make just like everything else they buy. I believe that everything we buy is an investment, so choosing wisely is the key to success to in managing money no matter how much you have